Charlotte Retail Market Report

Positive long-term trajectory hits speed bump this year. Charlotte has proven to be one of the more resilient retail markets in the nation, as illustrated by overall vacancy remaining at least 60 basis points below the long-term mean throughout the pandemic. Development is at a multi-decade low and will hardly improve in 2023, with the majority of space scheduled to come online already accounted for entering the year. Although this will help deter substantial upward movement in vacancy, economic uncertainty is putting a pause on many retailers’ plans for expansions, resulting in feeble net absorption projected for the coming quarters. Some retail segments are nevertheless reporting positive leasing velocity. Households are continuing to form, supporting consumer demand for home goods and department stores. Additionally, Charlotte has recently hosted larger leases from furniture store chains, like American Freight and Conn’s HomePlus, as well as signings by other department stores expanding their footprints. Recent move-ins by gyms also suggest confidence in the metro’s long-term residential growth.